France, Germany aim to settle EADS shareholder structure

Reuters Staff

2 Min Read

A visitor stands at the EADS booth during the ILA Berlin Air Show in Selchow near Schoenefeld south of Berlin, September 13, 2012.Tobias Schwarz

BERLIN (Reuters) - France and Germany held talks with representatives of EADS EAD.PA and Daimler (DAIGn.DE) in Paris over the weekend with the aim of settling a new shareholder structure for Europe's largest aerospace group, according to a German media report.

Frankfurter Allgemeine Zeitung said in an advance copy of a report due to appear in its Monday edition that talks focused on capping state shareholdings in EADS at 30 percent, giving France and Germany 12 percent each, Spain 4 percent, and leaving a 2 percent buffer that states could still possibly acquire later.

The paper added talks were also looking at what level of state participation there could be in the company's management, with suggestions of two places each for France and Germany on the executive board, and one place for Spain.

The new pact is due to be put to shareholders in the spring of 2013.

A French official declined to comment, while German officials were not immediately available for comment.

Germany had strived to have parity with France in EADS.

EADS' structure has been an urgent political issue since last month's failure of $45 billion merger talks with UK arms firm BAE Systems (BAES.L) exposed the fragility of existing arrangements.